Orla Mining — Investor Presentation (June 2021)
43 slides from Orla Mining's investor presentation, Jun 28, 2021
Slide 1: An Emerging Gold Company
NTD: Upload High Res Photos TSX:OLA NYSE:ORLA / JUNE 2021 An Emerging Gold Company
Slide 2: Cautionary Disclaimers
Cautionary Disclaimers F O R WAR D L O O K I N G S TAT E M E N T S AR E M AD E I N T H I S P R E S E N TAT I O N This presentation contains forward-looking statements and information within the meaning of Canadian securities law and United States securities laws, rules and legislation, including the
Slide 3: The Right Formula for Value Creation
The Right Formula for Value Creation C O N V E R T I N G R E S O U R C E S I N T O S H AR E H O L D E R VAL U E 1 2 3 Proven Strategy Quality Partners Quality Projects – Low risk – Experienced Management CAMINO ROJO team and Board of Directors – Low capital intensity OXIDES & SULPHIDES – Successful
Slide 4: 2020 – A Year of Milestones
2020 – A Year of Milestones ORLA CONTINUES TO DELIVER ON ITS OBJECTIVES 2020 Milestone L E AD I N G 2 0 1 9 - 2 0 2 0 S H AR E P E R F O R M AN C E 553% Completed Camino Rojo Project Financing 550% Strengthened Management Team 450% Advanced Camino Rojo Engineering & Procurement 350% Permitted Camino
Slide 5: 2021 Key Upcoming Milestones
2021 Key Upcoming Milestones F O U R H I G H Q U AL I T Y D E V E L O P M E N T O P P O R T U N I T I E S AN D E X P L O R AT I O N C AN D E L I V E R M O R E Q1 Q2 Q3 Q4 Camino Rojo Oxides CERRO QUEMA Construction and First Pour Q4 OXIDES & SULPHIDES Layback Infill Drilling and Reserve Update Q4 Ca
Slide 6: Management and Board
Management and Board S U C C E S S F U L E X P L O R AT I O N , D E V E L O P M E N T, AN D O P E R AT I N G T R AC K R E C O R D Jason Simpson Chuck Jeannes B O AR D M AN AG E M E N T PRESIDENT, CEO, DIRECTOR CHAIRMAN Director Wheaton Precious Metals, Pan American, Former Goldcorp CEO George Albino
Slide 7: Capital Structure
Capital Structure S T R AT E G I C S H AR E H O L D E R B AS E S U P P O R T I N G T H E G R O W T H O F T H E C O M PAN Y Capital Structure Top Shareholders Ownership Summary Share Price1 C$5.70 Newmont 41.1M 17.3% Strategic Shareholders* 34% 39% Mgmt. & Directors Shares Issued & Pierre Lassonde 28
Slide 8: COVID-19 Actions and Considerations
COVID-19 Actions and Considerations S AF E T Y AN D H E ALT H I S C R U C I AL , S O O R L A I S AP P R O AC H I N G I T S W O R K W I T H C AR E Mexico & Panama Health and Safety Community IN-COUNTRY RESTRICTIONS PROTECTING OUR SUPPORTING OUR BUT EXCEPTIONS FOR MINING STAKEHOLDERS LOCAL COMMUNITIES
Slide 9: Camino Rojo Asset
Camino Rojo Asset Z AC AT E C AS , M E X I C O
Slide 10: Camino Rojo – Overview
Camino Rojo – Overview O V E R 1 0 M O Z O F G O L D M I N E R AL R E S O U R C E S I N A S U C C E S S F U L M I N I N G D I S T R I C T ▪ Well situated C AM I N O R O J O AR E A I N F R AS T R U C T U R E – Proximal to Newmont’s Peñasquito (50 km SE) – More than 15 mines in the region, excellent i
Slide 11: Updated Camino Rojo Oxide Feasibility Study
Updated Camino Rojo Oxide Feasibility Study L AY B AC K E N H AN C E M E N T – M O R E G O L D , L O N G E R M I N E L I F E , M O R E C AS H F L O W C AM I N O R O J O O R E B O D Y ▪1 Complete Fresnillo ▪ Updated Feasibility Study incorporating additional ounces 2019 Reserve Pit in reserves1 2 – E
Slide 12: Camino Rojo Oxide Project
Camino Rojo Oxide Project S I M P L E P R O J E C T W I T H L O W C AP I TAL & O P E R AT I N G C O S T S , AN D S T R O N G R A T E O F R E T U R N P R O D U C T I O NX X PXROFILE (KOZ) Updated Feasibility Study Summary1 131 127 128 Total Ore to Leach Pad M tonnes 67.4 107 Gold Grade (Average) g/t
Slide 13: Camino Rojo Oxide Project Economics
Camino Rojo Oxide Project Economics SENSITIVITIES TO GOLD PRICE 1 PROJECT SENSITIVITY TO GOLD PRICE After-Tax After-Tax Gold Price ($/oz) Payback IRR NPV5% (US$m) (yrs) (%) $1,250 44% $288 2.0 $1,425 53% $370 1.7 $1,600 62% $452 1.5 $1,775 70% $534 1.3 $1,950 78% $616 1.2
Slide 14: Oxide Project – Low Capital Intensity
Camino Rojo Oxide Project – Low Capital Intensity PROJECT FUNDED TO PRODUCTION Capital Expenditures (US$m) L I F E O F M I N E C AP I TAL E X P E N D I T U R E S Mining Contractor Pre-Production Capital $91.6 Mobilization $2.2 Contingency Indirect Costs Other Owner’s Costs $15.9 EPCM EPCM $8.0 TOTAL
Slide 15: Oxide Project – High Margin Project
Camino Rojo Oxide Project – High Margin Project P O S I T I O N E D I N L O W E S T C O S T Q U AR T I L E 1 Cost Metrics $/t (ore) $/oz AL L - I N S U S TAI N I N G C O S T B R E AK D O W N Sustaining Reclamation Mining $3.37 $232 Capital Process $3.20 $220 Royalties Refining & G&A $1.60 $110 Trans
Slide 16: Oxides – Construction Preparation
Camino Rojo Oxides – Construction Preparation D E - R I S K I N G T H E P R O J E C T I N 2 0 2 0 H AS S E T U P T H E C O N S T R U C T I O N W E L L F O R 2 0 2 1 ▪ Zero incidents since the start CAMP CONSTRUCTION CRUSHING & CONVEYING of construction – Lost Time Injury or Environmental ▪ Construct
Slide 17: Oxides – Construction Progress
Camino Rojo Oxides – Construction Progress W E H AV E C AR R I E D G R E AT M O M E N T U M T H R O U G H Q 1 AN D TAR G E T I N G F I R S T P O U R I N Q 4 ▪ Earth moving CRUSHING & CONVEYING ▪ Concrete pouring ▪ Structural / mechanical install ▪ Major equipment received ▪ Drilling/blast pit – Over
Slide 18: Oxides – Construction Planned
Camino Rojo Oxides – Construction Planned S I T E P R E PAR AT I O N → E AR T H W O R K S → E Q U I P M E N T AS S E M B LY → S TAC K I N G → P O U R I N G ▪ Next steps: MERRILL-CROWE PLANT – Complete powerline connection – Complete concrete pouring – Heap leach liner and piping installation – Mecha
Slide 19: Oxides – Construction Progress
Camino Rojo Oxides – Construction Progress R E C L AI M T U N N E L AN D C O N V E Y O R C O N S T R U C T I O N
Slide 20: Oxides – Construction Progress
Camino Rojo Oxides – Construction Progress M I N I N G AC T I V I T I E S ( O V E R L I N E R M AT E R I AL )
Slide 21: Oxides – Construction Progress
Camino Rojo Oxides – Construction Progress P R O C E S S P O N D AN D H E AP L E AC H PAD
Slide 22: Oxides – Construction Progress
Camino Rojo Oxides – Construction Progress H E AP L E AC H PAD
Slide 23: Sulphide Endowment
Camino Rojo Sulphide Endowment O P P O R T U N I T Y T O U N L O C K VAL U E AF T E R O X I D E D E V E L O P M E N T CAMINO ROJO SULPHIDES – WELL DEFINED 1.6 Moz 2P GOLD RESERVES 1 (OXIDE) 9.5 Moz M&I GOLD RESOURCES 1,2 (OXIDE & SULPHIDE) 1.6 Moz INFERRED GOLD RESOURCES 1 (OXIDE & SULPHIDE)
Slide 24: Camino Rojo Sulphides – Tremendous Optionality
Camino Rojo Sulphides – Tremendous Optionality W E L L D E F I N E D , L AR G E G O L D D E P O S I T, S T R AT E G I C AL LY L O C AT E D ▪ Significant value – 7.5 Moz M&I1 gold D E V E L O P M E N T S C E N AR I O S ▪ Well-defined – over 350 km of core samples Options A B C ▪ Well located – mining
Slide 25: Mexico – Exploration
Mexico – Exploration N E AR - D E P O S I T D R I L L I N G & R E G I O N AL TAR G E T G E N E R AT I O N ( $ 4 M B U D G E T ) Sulfide Zone Drilling (H1 2021): ▪ 6,000m core drilling on the down plunge of the deposit ▪ Refine continuity and geometry of the higher-grade Au mineralization ▪ Provide m
Slide 26: Cerro Quema Asset
Cerro Quema Asset L O S S AN T O S , PAN AM A
Slide 27: Cerro Quema – Overview
Cerro Quema – Overview N E AR T E R M AU G R O W T H O P T I O N W I T H F U T U R E C U P O T E N T I AL ▪ Azuero Peninsula, SW Panama ~45 km SW of the city of CERRO QUEMA PROJECT SITE Chitré ▪ Prospective geology for oxide and sulphide mineralization – Two outcropping heap leachable oxide pits (Pa
Slide 28: Cerro Quema Oxide Base Case Economics
Cerro Quema Oxide Base Case Economics PAN AM A O X I D E P R O J E C T AD D S 8 0 % M O R E AN N U AL H I G H M AR G I N G O L D P R O D U C T I O N Q U E M I TA C R O S S S E C T I O N Key Metrics Base Case (US$)1 (OXIDE ZONE) Mine Life 5.5 years PFS pit outline Avg Annual Production ~80kozpa Const
Slide 29: Panama – Exploration
Panama – Exploration N E AR - D E P O S I T D R I L L I N G & R E G I O N AL TAR G E T G E N E R AT I O N ( $ 1 M B U D G E T ) Drilling Targeting Au-Cu Discoveries: CERRO QUEMA GEOPHYSICAL IP SURVEY R E G I O N A L E XP L O R A TI O N ▪ 3,750m ore drilling to test Caballito Trend, Quemita and La Pe
Slide 30: Cerro Quema – Caballito Cu-Au Discovery
Cerro Quema – Caballito Cu-Au Discovery O U T C R O P P I N G C U - AU M I N E R AL I Z E D Z O N E ▪ Sulfide Cu-Au (low As) 1.14 g/t Au over 24.1m Discovery 1.39% Cu, 0.50 g/t Au over 49m ▪ Indicates excellent upside potential for additional Cu-Au mineralization on the property 0.8% Cu, 0.13, g/t A
Slide 31: Working with our Community Partners
Working with our Community Partners C O M M U N I C AT I O N , E N G AG E M E N T, T R AN S PAR E N C Y Community agreements in place ▪ 30-year extendable Temporary Occupation Agreement (Mexico) ▪ Collaboration and Social Responsibility Agreements (Mexico) Open and transparent communication ▪ Mainta
Slide 32: Orla (OLA): Ranked 14th on TSX30
Orla (OLA): Ranked 14th on TSX30 T O P P E R F O R M I N G T S X S T O C K S O V E R T H E PAS T T H R E E Y E AR S TSX:OLA #14 30 Top 30 performers on the Toronto Stock Exchange
Slide 33: Appendices
TSX:OLA NYSE:ORLA Appendices
Slide 34: Management and Board
Management and Board S U C C E S S F U L E X P L O R AT I O N , D E V E L O P M E N T, AN D O P E R AT I N G T R AC K R E C O R D Chuck Jeannes Sylvain Guerard Elizabeth McGregor CHAIRMAN SVP, EXPLORATION DIRECTOR Previously served as President and Chief Executive Officer Thirty years of global mini
Slide 35: Camino Rojo Mineral Reserves and Resources
Camino Rojo Mineral Reserves and Resources O N E O F T H E L AR G E S T U N D E V E L O P E D G O L D R E S O U R C E S H E L D B Y A J U N I O R - ~ 1 2 M O Z AU E Q M & I , I Mineral Reserve Estimate Mineral Resource Estimate Tonnes Gold Silver Gold Silver Tonnes Gold Silver Gold Silver (000’s) (g
Slide 36: Summary of Agreement with Newmont
Summary of Agreement with Newmont O R L A C O N T R O L S T H E D E V E L O P M E N T D I R E C T I O N O F AL L T H E R E S O U R C E S Camino Rojo Acquisition – November 2017 31.9 million common shares of Orla, representing a 19.9% interest in Orla post transaction Consideration 2.0% NSR royalty o
Slide 37: Cerro Quema Oxide Project – 2014 PFS Summary
Cerro Quema Oxide Project – 2014 PFS Summary AN O T H E R O P E N - P I T W I T H L O W C AP I TAL , O P E R AT I N G C O S T S , AN D S T R O N G R AT E O F R E T U R N P L AN V I E W - P R O P O S E D P R O J E C T F O O T P R I N T 2014 Pre-Feasibility Study Summary (at $1275 gold) Ore processed
Slide 38: Cerro Quema Oxide Project – Base Case
Cerro Quema Oxide Project – Base Case H I G H R E T U R N P R O J E C T W I T H S T R O N G F R E E C AS H F L O W PRODUCTION PROFILE PROJECT SENSITIVITY TO GOLD PRICE 99 koz Gold Price IRR NPV5% ($/oz) (%) (US$M) 81 koz 69 koz 68 koz $1,275 33.7% $110 67 koz $1,500 46.0% $165 32 koz $1,750 58.7% $2
Slide 39: Cerro Quema Mineral Reserves and Resources
Cerro Quema Mineral Reserves and Resources Mineral Reserve Estimate Mineral Resource Estimate Million Tonnes Gold Gold Tonnes Gold Gold (000’s) (g/t) (oz) (000’s) (g/t) (koz) La Pava La Pava - Proven 6.82 0.80 176,000 Measured - Oxide 17,949 0.67 386 La Pava - Probable 7.40 0.67 159,000 Measured - S
Slide 40: Index Eligibility
Index Eligibility S I G N I F I C AN T D E M AN D C O U L D R E S U LT F R O M I N D E X I N C L U S I O N AS O R L A G R O W S Index Status Estimated Demand S&P/TSX Global Gold ✓ September inclusion MSCI Small Cap ✓ November inclusion MVIS Global Junior Gold Miners (GDXJ) ✓ December inclusion S&P/T
Slide 41: Index Criteria
Index Criteria I N C R E AS E D D E M AN D M AY R E S U LT F R O M AD D I T I O N AL I N D E X I N C L U S I O N AS O R L A G R O W S Index Criteria ▪ The security’s Float Market Cap (FMC) must represent a minimum weight of 0.04% of the index, after including the Quoted Market Value (QMV) of that se
Slide 42: Camino Rojo Project Financing
Camino Rojo Project Financing AL I G N M E N T O F D E B T AN D E Q U I T Y H O L D E R S Equity: C$75 million Project Finance Facility: US$125 million Syndicate Participation by Agnico Eagle and Date April 2020 (Trinity Capital) Pierre Lassonde Bought deal 36m common shares Term 5 years (December 2
Slide 43: Notes – Non-GAAP Measures
Notes – Non-GAAP Measures Note 1: The Company has included certain non-GAAP performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers and the non-GAAP measures do not have any st